Renault has withdrawn from a joint project with Mercedes-Benz to develop an upscale, rear-wheel drive sedan for the French automaker. A Renault spokesperson told Automotive News Europe that after determining that the business deal wasn’t favorable, it then decided to halt a feasibility study for a sedan based on the Mercedes E class platform.

Renault had been hoping to create a profit-boosting flagship model ever since it stopped making its poor-selling Vel Satis in 2009. This sedan would have had a price tag of around 50,000 euros ($65,000).

In a Wall Street Journal report, it was revealed that Renault scrapped the project since Daimler was offering parts from its existing E class, which would be close to the end of its life cycle when Renault would begin manufacturing its own version. Renault hasn’t yet made any comment to this report.